Being Made Redundant

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What is Redundancy?

When a business is forced to reduce the size of its workforce, it may eliminate unnecessary job positions through redundancy. The reduction in workforce may be caused by an economic downturn, the company’s decision to discontinue a product, or a company’s move from one location to another.

A redundancy is not a reflection on your individual job performance; a company has a legal responsibility to prove that the redundancy is due to the eliminations of the job position and not an unfair dismissal.

Steps An Employer Must Take to Make You Redundant

An employer must inform you, in writing, of the reasons you are being made redundant. The written notice must be delivered to you at least one week prior, more if you have been employed with the company for more than 2 years, to the dismissal. Next, a meeting should be scheduled to discuss the employer’s reasons for your dismissal.

By law, you must be allowed an opportunity to appeal the redundancy. Failure to follow these steps could result in the redundancy being deemed unfair and the company may be liable for additional discrimination damages.

What If You Think Your Dismissal Was Unfair?

You have options if you think your dismissal was unfair. If your company failed to notify you of the redundancy in writing or denied you the opportunity to appeal, you can file a complaint with the employment tribunal. If the tribunal rules your dismissal was indeed unfair, you may qualify for discrimination damages.

The company may try and offer you an alternative job instead of redundancy; however, if the job offered is not suitable, you may still have a claim for unfair dismissal.

You may be entitled to Redundancy Pay

If you are under the age of 65 and you have been employed by the company for at least two years at the time of your redundancy, you may have a statutory right to redundancy pay. Some companies offer a contractual alternative pay plan for employees who have been employed less than two years.

The statutory amount of redundancy pay is dependent on several factors including your age, the amount of your weekly pay, and how long you have worked for that employer.